Investments in mutual funds through systematic investment plans (SIP) are witnessing a rise month-on-month. The CEO of Association of Mutual Funds in India (AMFI) NS Venkatesh said that large inflows are coming into SIPs.
Speaking to CNBC-TV18, the AMFI CEO said, "…every month we are seeing a bit of an increase in SIP accounts. In January it was 16.4 lakh accounts."
"The main thing is that markets are touching new highs so people want to participate in the market. They are willing to look at mutual fund as a route to participate. Retail investors are flocking into the SIP route, which is the safest route for them," Venkatesh explained.
According to him, investors looking to invest for medium or long-term are moving into SIPs. "The direct participation is mainly for the short-term trades, so to that extent direct participation is happening. The SIP is a medium to long-term of a phenomena, so people who have a medium to long-term investment horizon, they are coming into mutual fund through SIP route," he said.
To know more, watch the video.
(Edited by : Jerome Anthony)
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